SlashProof Testnet Live on K2 Powered by Karak

The future is restaked, and secured by SlashProof

We are excited to officially announce that SlashProof Testnet is now live on K2 powered by Karak!

Staking has become the cornerstone of crypto, offering users the opportunity to participate in network consensus and earn rewards by locking up their Ethereum (ETH) in exchange for Staked Ethereum (stETH). Stakers play a pivotal role in securing the network, and as a result, the entire industry–but their assets are often exposed to the systemic risk of slashing.

Restaking takes staking to a whole new level. It enables staked ETH to be utilized as cryptoeconomic security for protocols beyond the consensus layer. In return, users receive protocol fees and rewards. This evolution is significant, expanding the utility of staked assets and pushing the limits of what is possible in the blockchain ecosystem.

However, with great reward comes great risk. Slashing risk is a fundamental risk in blockchain networks that rely on proof-of-stake (PoS) or similar consensus mechanisms. Validators, who help secure the network by staking their assets, can face penalties or “slashes” for various reasons, including:

• Malicious behavior: Validators may attempt to manipulate the network for personal gain.
• Protocol violations: Validators might inadvertently or intentionally break network rules.
• Downtime: Validators could fail to maintain required uptime, leading to penalties.

These slashing events can result in the loss of staked assets, which poses a significant financial risk to validators and stakers alike.

Enter SlashProof, the first protocol designed to protect every staker and restaker in the world. It’s the first and only platform where you can safeguard your staked and restaked assets using cutting-edge zero-knowledge proofs. SlashProof verifies whether a validator has been slashed onchain by using zero-knowledge proofs. These proofs are cryptographic and allow the protocol to confirm the occurrence of slashing events in a completely decentralized manner without exposing sensitive data or compromising privacy.

Through this trustless and novel slashing verification mechanism, SlashProof provides the layer of security that reassures validators and stakers by protecting their assets from systemic risks and slashing events. This not only safeguards their financial interests but ultimately encourages more users than ever before to participate in network security through staking and restaking.

SlashProof’s strategic choice to build on the K2 blockchain is rooted in several core reasons. First, the network’s technical advantages with native restaking leveraged from Karak significantly bolster security and risk management applications. Second, K2's unique integration with various L1s, starting with both the execution and consensus layer of Ethereum, enables a new class of protocols to be built with the same trustless properties everyone expects. Finally, K2 enables low transaction fees due to its modular data availability architecture, creating an ideal environment for SlashProof and similar applications that require computationally expensive transactions to thrive. These low fees not only reduce the operational costs for users but also make it economically feasible to engage in risk management strategies at scale without the burden of high gas fees that often plague other networks.

Testnet Launch

With the launch of the SlashProof Testnet, the first product focuses on Staking Protection for Ethereum stakers. It’s a significant step toward mitigating the risks associated with staking on Ethereum. Users can rest assured that their assets are shielded from slashing events, allowing them to stake confidently and participate in the network’s security while benefiting from steady rewards.

But the journey doesn’t stop here. The next big product is already in progress: Restaking Protection. This innovative solution will extend the same level of security and peace of mind to those who choose to restake their assets across various blockchain protocols. More detailed and technical long-form to come soon.

In the meantime, we encourage users to participate in the SlashProof Testnet to learn more about the product, test the functionalities, and help identify any bugs. By participating in testnet, users will be part of an exclusive group that may qualify for exclusive benefits.

Note that to use the SlashProof Protocol, users will need to bridge assets to and from the K2 Network, as that is where the SlashProof Protocol currently resides.

To get started, check out the onboarding guide below and visit the app here.

Testnet Guide

Onboarding onto K2

• Click on “Connect Wallet”.
• Welcome modal appears and click “Continue”.
• Select your Wallet and click “Next”.
• Click on “Receive Tokens” to have some testnet tokens sent to your wallet. Please note this action is only valid every 12 hours.
• Deposit ETH from Goerli onto K2, the L2 that SlashProof is built on. This ETH will be added to your account balance on K2 and will be used as gas for your transactions.
• Deposit wstETH from Goerli onto K2, the L2 that SlashProof is built on. This wstETH will be added to your account balance on K2 and will be used to either provide capital and/or pay for premiums when purchasing protection.
• Once you deposit both ETH and wstETH onto K2, you should see a success page that provides a link to the Goerli block explorer.
• Please note for Testnet the protocol uses a mock version of wstETH.

Providing Protection

• Navigate to the “Provide Protection” tab.
• Navigate to the order box on the page, enter the amount that you want to underwrite denominated in wstETH and invest to earn deposit rewards.
• Click deposit and approve the transaction in your wallet.
• If you successfully provide protection, you should see a “Deposited successfully” notification pop up at the top right of your screen. You are also able to click the “View transaction” link and view your transaction on Etherscan.

Purchasing Protection

• Navigate to the “buy protection” tab, and select the pool.
• In the order box, you can view four things:
• First, you’ll see“Validator Protection Amount”, which asks for the amount of coverage that you would like in the case your validator gets slashed, denominated in ETH.
• Second, you’ll see “Your Validator Index” which asks for the validator index that you are purchasing protection for. You can find the validator index here https://beaconcha.in.
• Third, you’ll see “Pay Premium in” which asks you to choose the asset you would like to pay the premium in.
• Fourth, you’ll see “Premium” and “Quote Expiry”, which displays your premium and the time you have to complete the transaction as your quote is only valid for 5 minutes.
• Click “Purchase Protection” and approve the transaction in your wallet.
• If you purchased protection successfully, you should see a “Purchase Successful” notification pop up at the top right of your screen. You are also able to click the “View transaction” link and view your transaction on Etherscan.
• Please note that the protocol will also allow for protection to be purchased for slashed validators while in testnet so that users can test the event flow as well.

Withdraw

• Navigate to the “Portfolio” tab and inside it choose the “Investing” tab.
• Click withdraw, and approve the transaction on your wallet.
• If you successfully withdraw, you should see a “Withdrew shares successfully!” notification pop up at the top right of your screen. You are also able to click the “View transaction” link and view your transaction on Etherscan.
• Please note that withdrawals will only work after the vault expires in 2 months.

Event

• Navigate to the “Portfolio” tab and inside it choose the “Protection” tab.
• Click on file event, but note that proof generation for an event can take some time, once it is done approve the transaction on your wallet.
• If you successfully file an event, you should see a “Finished event successfully!” notification pop up at the top right of your screen. You are also able to click the “View transaction” link and view your transaction on Etherscan.

Offboarding off of K2

• Click on the “Account Balance” pill at the top right corner of your screen.
• Once the Account Balance modal appears, click on “Withdraw”.
• You will then have the option to either withdraw ETH or wstETH from K2 back to Goerli.
• Once you select the asset you want to withdraw, click “Withdraw”. Please note this only initiates your withdrawal. As SlashProof is built on K2, an L2, it will take some time for the withdrawal to finalize back on the L1. You can find your pending withdrawals in the “Withdrawals” tab in the Portfolio section of the SlashProof app.
• Once your withdrawal is finalized, go to the “Withdrawals” tab in the Portfolio section of the SlashProof app and click “Finish Withdraw”.

About SlashProof

SlashProof is the only place where you can protect your staked and restaked assets, secured by zero-knowledge proofs.

About K2

K2 is the first modular Layer 2 blockchain with native risk management, restaking, and AI infrastructure built for the next billion users.

Disclaimer: This information is for informational purposes only and does not constitute financial or investment advice. Users should exercise their own discretion and conduct thorough research before engaging in any financial activities.